The increase in congestion on Britain’s Road’s

Congestion comes about when the actual journey times taken by transport users are in excess of their normal expectations. Congestion can have many consequences other than increased journey time, the stress caused by it can be the cause of road rage, as well as the increase in harmful emissions having detrimental effects to the areas buildings, air quality and quality of life of all involved.

Congestion more simply is caused by too many cars chasing too little road space. The demand for this mode of transport has far exceeded the supply. The increase in incomes and relative fall in the price for cars has led to the higher number of cars on the road. The supply for road use is fixed in the short run as it cannot be transferred; the roads are not constantly congested, it is only during peak times, the empty roads of the night and day cannot be transferred to the busy periods of morning and tea-time. In the long run another road could be built.

In economic terms congestion is a mixture of externalities and information failure. Negative externalities exist as the car produces emissions, which are harmful to the environment, the wear and tear of the roads, and the opportunity costs are not inc

(iii) Increased expenditure on public transport.

Income elasticity of demand (YED)( Percentage change in quantity demanded/Percentage change in income) measures the responsiveness of demand to a given change in income.

If YED is positive then the good is normal. Consumers use an increase in income to buy more of the good. In this case income elasticity of demand is positive.

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